Goldman Sachs Upgrades U.S. Media Sector to "Attractive" (DIS, TXW, VIAB)

Goldman Sachs Upgrades U.S. Media Sector to “Attractive” (DIS, TXW, VIAB)

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On Tuesday Goldman Sachs analysts upgraded the entire U.S. media sector as the firm anticipates that the sector will see a strong second half of 2013 driven by advertising growth.

Goldman Sachs also cited an increased demand in the need for professional content, solid overall growth, and social media opportunities on the horizon as reasons that the media sector is an attractive play.

Following the upgrade of the U.S. media sector from “Neutral” to “Attractive,” the firm also reiterated some ratings for the following media companies.

The Walt Disney Company (DIS) remained a “Buy” rating and the price target is $56. This target is a +7% upside to Friday’s closing price of $52.34.

Time Warner, Inc. (TWX) also maintained its “Buy” rating with a price target of $51. That suggests a +2% upside to Friday’s closing price of $49.93.

Furtermore, Goldman Sachs upgraded the media conglomerate Viacom, Inc. (VIAB) to “Buy” with a price target of $62. This target is a +7% upside to Friday’s closing price of $57.88

Disney shares were down slightly during pre-market trading on Tuesday. Time Warner and Viacom shares were flat during pre-market.

The Bottom Line
Shares of Walt Disney (DIS) have a 1.43% dividend yield, based on Friday’s closing stock price of $52.34. The stock has technical support in the $48 price area. The shares are trading near all-time highs. Shares of Time Warner (TWX) have a 2.08% dividend yield, based on Friday’s closing stock price of $49.93. The stock has technical support in the $44-$46 price area. If the shares can firm up, we see overhead resistance around the $53-$54 price levels. Shares of Viacom (VIAB) have a 1.90% dividend yield, based on Friday’s closing stock price of $57.88. The stock has technical support in the $54 price area. The shares are trading near all-time highs.

The Walt Disney Company (DIS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Time Warner Inc. (TWX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Viacom, Inc. (VIAB) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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